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High Court of Gujarat

HASMUKHBHAI DIPCHANDBHAI GAARDIversusJOINT CHARITY COMMISSIONER

Decided
Disposal
56-DISPOSED AT ADMISSION STAGE

Holding

The Court held that Sections 41-A and 50A are distinct and the earlier stay does not automatically stay Section 50A proceedings, but ordered a three‑week suspension of any adverse order pending cooperation of the parties.

Summary

The petitioners sought to keep proceedings under Section 50A of the Gujarat Public Trusts Act in abeyance, arguing that continuation would contravene an earlier interim stay granted on a direction issued under Section 41-A. The Joint Charity Commissioner had rejected their application for abeyance. The respondents contended that the two sections serve different purposes and that the earlier stay does not extend to Section 50A matters. The Court examined the distinction between the powers under Sections 41-A (administrative directions) and 50A (framing or modifying schemes) and concluded that they are separate. While refusing to stay the Section 50A proceedings, the Court directed the parties to cooperate and ordered that any adverse order issued under Section 50A be suspended for three weeks. The petition was disposed without interfering with the Commissioner’s order and without adjudicating the merits.

Issues considered

  • Whether the interim stay granted on a direction under Section 41-A extends to proceedings under Section 50A of the Gujarat Public Trusts Act.
  • Whether Sections 41-A and 50A of the Gujarat Public Trusts Act are distinct in nature and purpose.
  • Whether the petitioners are entitled to a stay of the Section 50A proceedings.

Legislation cited

  • Gujarat Public Trusts Act, 1950 — s. 41-A, 50-A

Subjects

  • Gujarat Public Trusts Act
  • Section 41-A
  • Section 50-A
  • Charity Commissioner
  • stay of proceedings
  • abeyance
  • trust administration
  • interim relief

Judgment

     C/SCA/9367/2026                             ORDER DATED: 21/07/2026




     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

          R/SPECIAL CIVIL APPLICATION NO.9367 of 2026

=========================================
                HASMUKHBHAI DIPCHANDBHAI GAARDI & ORS.
                                  Versus
                   JOINT CHARITY COMMISSIONER & ORS.
=========================================
Appearance :
MR S I NANAVATI, SENIOR COUNSEL ASSISTED BY MR VANDAN BAXI WITH
MS KAJAL D SHAH FOR NANAVATI & NANAVATI for the Petitioners.
MR GURSHARANSINGH H. VIRK, GOVERNMENT PLEADER ASSISTED BY MR
SHAUNAK A VYAS AND MR NIKUNJ KANARA, AGP for the Respondent No.1.
MR DM DEVNANI for the Respondent No.3.
=========================================

 CORAM:HONOURABLE MR. JUSTICE NIRZAR S. DESAI

                            Date : 21/07/2026
                                 ORDER


               I have heard Mr. S. I. Nanavati, learned Senior Counsel
assisted by Mr. Vandan Baxi and Ms. Kajal D. Shah for the
petitioners, Mr. Gursharansingh H. Virk, learned Government
Pleader assisted by Mr. Shaunak Vyas and Nikunj Kanara, learned
Assistant Government Pleaders for respondent No.1 and learned
advocate Mr. D. M. Devnani for respondent Nos.2 and 3.


2.             By way of this petition, the petitioners have challenged
the order dated 17.6.2026 passed by the learned Joint Charity
Commissioner, Rajkot below application Exh.37 in Application
No.42 of 2024.         The center of controversy is the order dated
17.6.2026 whereby the learned Joint Charity Commissioner, Rajkot
rejected application Exh.37 preferred by the petitioners to keep the
proceedings in abeyance under Section 50A of the Gujarat Public
Trusts Act, 1950 which are going on before the learned Joint
Charity Commissioner, Rajkot.


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     C/SCA/9367/2026                                ORDER DATED: 21/07/2026




3.             According to learned Senior Counsel Mr. S. I. Nanavati
appearing for the petitioners,             continuation of the aforesaid
proceedings would run contrary to the directions issued by this
Court vide order dated 2.5.2025 passed in Special Civil Application
No.6359 of 2025 which reads as under :-


               “Heard Mr. S. I. Nanavati, learned senior counsel

               assisted by learned counsel Mr. Vandan K. Baxi for

               the petitioners.



               Issue NOTICE returnable on 30.6.2025.



               In the meantime, there shall be AD-INTERIM STAY

               of the direction No.(7) contained in the impugned

               order dated 11.10.2024.



               Direct service is permitted.”


4.             Learned Senior Counsel Mr. S. I. Nanavati drew
attention of this Court that the direction No.7 of the order dated
11.10.2024 which is stayed by the coordinate Bench is in respect of
the manner in which the General Members and the Trustees can be
appointed and for tendering the Change Report accordingly.                    He
further submitted that if the Scheme Application under Section 50A
is directed and continued to be heard, in that case, the same would
run contrary to the order dated 2.5.2025 passed by the coordinate
Bench of this Court in Special Civil Application No.6359 of 2025
which is reproduced in foregoing paragraph.




                                   Page 2 of 5
     C/SCA/9367/2026                           ORDER DATED: 21/07/2026




5.             Mr. Gursharansingh H. Virk, learned Government
Pleader appearing for respondent No.1 as well as learned advocate
Mr. Dharmesh Devnani appearing for respondent Nos.2 and 3
submitted that the aforesaid order dated 2.5.2025 was passed
pursuant to an order passed below application preferred under
Section 41-A by the learned Joint Charity Commissioner and hence,
the proceedings under Section 50-A are altogether of a different
nature and, therefore, if the proceedings under Section 50-A is kept
in abeyance, the same would indicate that the real intention of the
petitioners is to delay the proceedings of Section 50-A.


6.             Learned Senior Counsel Mr. S. I. Nanavati vehemently
opposed the aforesaid submission and submitted that in view of the
fact that the aforesaid proceedings are not stayed, the resultant
effect would be that the functioning of the Trust would be taken
over by the other side. Therefore, the proceedings under Section
50-A going on before the learned Joint Charity Commissioner,
Rajkot are required to be stayed.


7.             I have heard learned counsel appearing for the
respective parties and perused the record.       On perusal of the
record, I found that it is true that the coordinate Bench of this
Court has vide order dated 2.5.2025 passed in Special Civil
Application No.6359 of 2025 passed an order whereby ad-interim
stay in respect of direction No.7 in respect of the order dated
11.10.2024 is granted and the aforesaid relief is still operating in
favour of the petitioners. However, I cannot ignore the fact that
the proceedings under Section 41-A and Section 50-A of the
Gujarat Public Trust Act are of distinct nature and are in respect of
two different purpose.     Section 41-A of the Act is operating in


                                Page 3 of 5
    C/SCA/9367/2026                                ORDER DATED: 21/07/2026




respect of power of Charity Commissioner to issue directions in
respect of administration of Trust.          Therefore, the exercise of
powers in respect of Section 41-A would be in respect of existing
scheme of the Trust which would indicate that without disturbing
the existing Scheme of the Trust, the directions can be issued by
the Charity Commissioner to the Trustees and other persons just to
ensure that such Trust is properly administered and the income
thereof is appropriately accounted for and duly appropriated and
applied to the objects and purposes of the Trust, whereas Section
50-A of the Act is in respect of power of Charity Commissioner to
frame, amalgamate or modify the Schemes which would indicate
that in future, how the Trust affairs would be taken care of and how
the Trustees are required to act or the methodology of appointment
of Trustees and the functioning of the Trustees would be
considered while framing Scheme under Section 50-A which would
indicate that both the Sections would operate for two different
purposes and, therefore, generally, the instructions issued under
Section 41-A even if it is stayed by the coordinate Bench of this
Court, the same would not come in the way of ongoing proceedings
of Section 50-A before the concerned Joint Charity Commissioner.
However, just to strike balance between the parties, the interest of
justice would be served if the petitioners are directed to participate
in the proceedings of Section 50-A going on before the Joint Charity
Commissioner, Rajkot and the parties are directed to cooperate in
the aforesaid proceedings and in case if the Joint Charity
Commissioner, Rajkot upon conclusion of the aforesaid proceedings
under Section 50-A pending before him passes an order which may
adversely affect the present petitioners, the same shall not be
implemented for a period of three weeks from the date of service of
the order.


                               Page 4 of 5
         C/SCA/9367/2026                                                              ORDER DATED: 21/07/2026




 8.                   At this juncture, it is stated by learned advocate Mr.
 Devnani that in that case, whenever the aforesaid order is
 challenged before the appropriate authority, the respondent Nos.2
 and 3 or in that case any other respondents may be permitted to
 draw distinction between the said Authority as to how the aforesaid
 order would not affect or run contrary to the directions issued by
 this Court while granting relief in favour of the petitioners vide
 order dated 2.5.2025.


                      The aforesaid request being a reasonable request is
 granted.


 9.                   Accordingly, with the above direction, the present
 petition stands disposed of without interfering with the order dated
 17.6.2026 passed by the learned Joint Charity Commissioner,
 Rajkot below application Exh.37 in Application No.42 of 2024. It is
 made clear that this Court has not examined the merits of the case
 and all the rights and contentions of all the parties are kept open.



                                                                                   (NIRZAR S. DESAI,J)


 SAVARIYA

Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: RAJNISH NARENDRA SAVARIYA(HC00179), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 21/07/2026 17:22:31




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